BAKU, Azerbaijan, April 21. A new stage of development has begun in Karabakh under the leadership of President of the Republic of Azerbaijan Ilham Aliyev, political analyst Azer Garayev told Trend.
"The Second Karabakh War, which ended in 2020, is remembered in Azerbaijan’s modern history not only for its military victory but also for marking the beginning of a new stage of development under the leadership of President Ilham Aliyev. The liberation of the Karabakh and Eastern Zangezur regions from occupation posed an entirely different and more complex task for the country. While the main goal during the war was the restoration of territorial integrity, in the post-war phase, the reconstruction of life in these lands, the return of people, and the economic revitalization of the region became priorities for President Ilham Aliyev.
The first images of the destruction of the liberated territories caused by the Armenians clearly demonstrated just how difficult this task is. The cities were completely destroyed, villages were erased from the map, and the social and economic infrastructure was devastated. Cities like Aghdam, Fuzuli, and Jabrayil were virtually reduced to rubble. This picture reflected not only the physical destruction but also the result of years of halted life.
This reality compelled Azerbaijan to choose an approach different from the classic restoration model, and this approach is based on the development strategy put forward by President Ilham Aliyev. The processes carried out in Karabakh are not just reconstruction; they are, in fact, a rebuilding project from scratch. In this regard, the work carried out in this region in recent years is being carefully followed not only within the country but also on the international level," he said.
According to him, one of the main problems that emerged immediately after the war in Karabakh was the mine danger. A large portion of the territories was contaminated with mines and unexploded ordnance. This not only delayed the return of people but also made it difficult to start construction and restoration work.
"The mine problem remains one of the most serious obstacles to the restoration of Karabakh. Every inch of land carried potential risks, and without eliminating this risk, it was impossible to build residential settlements or establish economic activity. For this reason, mine clearance became one of the main directions of state policy and continues today. At the same time, the restoration of infrastructure in the initial phase was of vital importance. Without electricity, water supply, and road infrastructure, no activity could take place in the region. Therefore, the main focus in the first years was on these areas.
Temporary electricity lines were installed, water sources were restored, and construction of major transportation routes began. During this period, new approaches were also applied in state management. Special mechanisms were created to coordinate the activities of various institutions related to the restoration of Karabakh. Thanks to this coordination, the implementation of projects began to be carried out in a more systematic and faster manner," he noted.
Garayev pointed out that one of the main factors contributing to the revival of Karabakh is the large financial resources allocated by the state under the leadership of President Ilham Aliyev. In recent years, more than 17 billion manat ($10 billion) has been directed towards the restoration and development of these territories. Specifically, 55 million manat ($32 million) was allocated in 2020, 2.18 billion manat ($1.28 billion) in 2021, 4.3 billion manat ($2.5 billion) in 2022, 5.6 billion manat ($3.29 billion) in 2023, and 5.3 billion manat ($3.1 billion) in 2024. This figure clearly demonstrates the scale of the projects being carried out in the region.
"Most of these funds have been directed towards infrastructure projects. The construction of roads, the building of bridges, the excavation of tunnels, and the establishment of energy systems are the main directions of these investments. In addition, the construction of residential buildings, the creation of social facilities, and the development of industrial sectors are also crucial parts of this process. The restoration of Karabakh doesn't only aim to meet current needs. This process is being carried out on the basis of a long-term strategy. The goal is to turn this region into one of Azerbaijan’s economic development centers in the future. In this regard, all the projects being carried out are planned according to the principles of sustainable development," he noted.
According to him, Azerbaijan's friendly and partner countries play a special role in the restoration of Karabakh.
"Here, we can mention the construction of a mosque in Fuzuli on the initiative of the Chairman of the People’s Council of Turkmenistan, Gurbanguly Berdymukhamedov; the establishment of the Kurmangazy Children’s Creativity Center in Fuzuli on the initiative of President Kassym-Jomart Tokayev; a modern school building in Fuzuli funded by Uzbekistan; the construction of a secondary school in Aghdam's Khidirli village, on behalf of the Kyrgyz Republic by President Sadyr Zhaparov; the participation of Turkish companies in dozens of projects in the region; Belarus' role in the establishment of an agricultural village, and several other projects. Of course, one of the key factors here is the relationship between President Ilham Aliyev and the leaders of these countries," he said.
The analyst emphasized that transportation infrastructure is of special importance for the development of Karabakh. For many years, the roads in these areas had become completely unusable. However, after the war, large-scale work in this field began.
"Under the leadership of the President, more than 3,000 kilometers of roads are being built in the liberated areas. These roads connect the main cities and villages of the region and ensure Karabakh’s connectivity with other parts of Azerbaijan. The tunnels and bridges built in the mountainous areas are complex from an engineering perspective, but they are of vital importance for the development of the region.
Additionally, the construction of three international airports in Karabakh has provided further impetus to the region’s development. The Fuzuli, Zangilan, and Lachin airports are now operational, and these airports enhance both the economic and tourism potential of the region. These facilities allow Karabakh to become part of the international transportation map," Garayev said.
According to him, one of the most striking features of the restoration work in Karabakh is the application of modern urban planning principles. Not only is the restoration of the old cities taking place, but a new model of urbanization is also being created.
"Already, master plans have been approved for eight cities, and projects have been developed for dozens of settlements. While preparing these plans, factors such as ecological balance, energy efficiency, and technological development are prioritized. This approach creates the conditions for Karabakh to become a modern and innovative region in the future. The ‘smart village’ project implemented in the Aghali village of Zangilan is an exemplary model in this regard. The technologies applied within this project cover various areas, from agriculture to energy supply. This shows that the model being built in Karabakh is not limited to cities; modern approaches are also being applied in rural areas.
The declaration of Karabakh and Eastern Zangezur as a green energy zone by President Ilham Aliyev is one of the key decisions determining the direction of the region’s development. This approach is important both ecologically and economically. Currently, the construction of a large solar power station in the Jabrayil district is ongoing. The shareholders of the Shafag solar power plant include bp, SOCAR, and the Azerbaijan Investment Company, and it's planned to invest approximately $200 million in the project.
Moreover, other renewable energy projects are also planned. The restoration of small hydroelectric stations and the construction of new energy facilities are increasing the energy potential of the region. This strategy will enable Karabakh to play a significant role in energy production in the future. At the same time, this approach aligns with Azerbaijan’s overall energy policy," he said.
The analyst noted that the increase in economic activity in Karabakh is closely linked to the favorable business environment created by the state. Tax and customs exemptions, credit subsidies, and other support mechanisms for entrepreneurs are boosting the flow of investments into the region.
"Based on the President’s instructions, several tax and customs exemptions and exemptions have been offered to residents of the liberated territories. Starting from January 1, 2023, these include exemption from profit (income), property, land, and simplified taxes for 10 years; exemption from VAT for the import of machinery, technological equipment, and raw materials for 10 years; exemption from customs duties for the import of machinery, technological equipment, and raw materials for 10 years; exemption from taxes on dividend income for shareholders (partners) of legal entities for 10 years; 30% of the VAT paid for hotel and accommodation services paid by consumers via cashless means and 5% of VAT paid in cash are refunded.
Besides, for entrepreneurs engaged in production activities, from January 1, 2023, the government will provide financial assistance to cover 20% of the costs of utility services (electricity, natural gas, water supply, and wastewater services) that they pay on a monthly basis. The Aghdam Industrial Park and the Araz Valley Economic Zone have already seen the launch of several enterprises. These enterprises are creating new jobs and accelerating economic development in the region.
In the process of Karabakh’s reconstruction, both infrastructure and economic projects play a crucial role, but the human factor is equally decisive. In fact, the main goal of all these construction works is to ensure the return of people to their homeland and restore their normal living conditions. In this regard, the ‘Great Return’ program, launched by President Ilham Aliyev, is at the heart of Karabakh’s revitalization strategy. In recent years, tens of thousands of displaced people have already returned to Karabakh.
This return is taking place in stages, and each resettlement process is organized based on careful planning. The return of people is not limited to building homes. It also requires the creation of jobs, the provision of social services, and the overall formation of all necessary conditions for living. Looking at the lives of the returning people, we see that this process is progressing successfully, and the development of Karabakh is indeed taking place in a way that corresponds to Azerbaijan’s long-term plans for the future," he concluded.